USD/JPY: Side of caution - Westpac

Sandeep Kanihama FXStreet Contributor

Robert Rennie, Research Analyst at Westpac, explains that they have shifted back to a neutral stance on the basis of firstly that the US$ had come a long way in a short period of time and that a number of technical objectives were close to being achieved e.g. 50% retracement of 114.73 November high to 104.56 March low coming in at 109.73.

Key Quotes

“The other factor was last week’s FOMC which saw the arrival of a “symmetric” inflation target in the statement. To be sure, higher oil prices could add pressure to market-based FOMC rates pricing. However, outside of that, it’s hard to see where a major boost comes from. Thus, we err on the side of caution at 110 for another week.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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